Kinder Morgan Inc (KMI)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.42 | 0.42 | 0.41 | 0.43 | 0.40 | 0.40 | 0.41 | 0.43 | 0.41 | 0.42 | 0.41 | 0.42 | 0.44 | 0.43 | 0.44 | 0.44 | 0.45 | 0.45 | 0.44 | 0.43 |
| Debt-to-capital ratio | 0.49 | 0.50 | 0.49 | 0.50 | 0.48 | 0.48 | 0.48 | 0.49 | 0.48 | 0.49 | 0.48 | 0.48 | 0.50 | 0.50 | 0.50 | 0.49 | 0.51 | 0.51 | 0.50 | 0.49 |
| Debt-to-equity ratio | 0.98 | 0.99 | 0.94 | 0.99 | 0.93 | 0.92 | 0.94 | 0.95 | 0.92 | 0.95 | 0.93 | 0.94 | 1.00 | 0.98 | 1.01 | 0.97 | 1.02 | 1.03 | 0.99 | 0.95 |
| Financial leverage ratio | 2.34 | 2.33 | 2.33 | 2.33 | 2.34 | 2.28 | 2.26 | 2.24 | 2.28 | 2.28 | 2.27 | 2.26 | 2.28 | 2.28 | 2.29 | 2.21 | 2.29 | 2.28 | 2.26 | 2.22 |
Based on the provided data, Kinder Morgan Inc's solvency ratios demonstrate a consistent and relatively stable financial position over the past few years.
1. Debt-to-assets ratio has ranged between 0.40 to 0.45, indicating that approximately 40% to 45% of the company's assets are funded by debt.
2. Debt-to-capital ratio has hovered around 0.48 to 0.51, implying that debt comprises around 48% to 51% of the company's total capital structure.
3. Debt-to-equity ratio has remained steady around 0.90 to 1.00, suggesting that the company has a balanced mix of debt and equity in its capital structure.
4. Financial leverage ratio has shown slight fluctuations between 2.20 to 2.35, illustrating the company's ability to utilize debt to increase returns for shareholders.
Overall, Kinder Morgan Inc's solvency ratios indicate a well-managed and financially stable position, with a prudent level of leverage to support its operations and growth initiatives.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.68 | 3.15 | 2.33 | 2.47 | 2.72 | 2.79 | 2.89 | 2.88 | 2.71 | 2.68 | 2.68 | 1.42 | 1.95 | 1.96 | 1.92 | 2.21 | 0.98 | 1.52 | 1.54 | 2.19 |
The interest coverage ratio is a measure of a company's ability to meet its interest obligations based on its earnings. A higher ratio indicates that the company is better positioned to cover interest expenses.
Analyzing the interest coverage ratio of Kinder Morgan Inc over the period from March 31, 2020, to December 31, 2024, reveals fluctuations in its ability to cover interest costs. The ratio ranged from a low of 0.98 on December 31, 2020, indicating potentially strained financial health, to a high of 4.68 on December 31, 2024, signaling a significant improvement in the company's ability to cover interest payments.
Specifically, the interest coverage ratio improved from 1.54 as of June 30, 2020, to 2.68 as of June 30, 2022, and continued to strengthen, reaching 4.68 by December 31, 2024. These improvements suggest that Kinder Morgan Inc experienced enhanced earnings relative to its interest obligations during these periods.
It is important to note that a rising interest coverage ratio is generally viewed positively by investors and creditors as it indicates improved financial stability and reduced risk of default. Therefore, Kinder Morgan Inc's increasing interest coverage ratio trend from 2020 to 2024 may be seen as a positive indicator of the company's financial health and ability to manage its debt obligations.